Essay about Brigham - Financial Management 13th Test Bank (Chapter-1)

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------------------------------------------------- CHAPTER 1 AN OVERVIEW OF FINANCIAL MANAGEMENT AND THE FINANCIAL ENVIRONMENT Please see the preface for information on the AACSB letter indicators (F, M, etc.) on the subject lines. True/False Easy: | (1.2) Firm organization F M | Answer: b | EASY | . | The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | | | | | | | | | | | | (1.2) Firm organization F M | Answer: b | EASY | . | The…show more content…
They change the bid and ask prices of the securities so as to keep supply and demand in balance. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | Medium: | (1.2) Partnership F M | Answer: b | MEDIUM | . | The disadvantages associated with a proprietorship are similar to those under a partnership. One exception relates to the more formal nature of the partnership agreement and the commitment of all partners' personal assets. As a result, partnerships do not have difficulty raising large amounts of capital. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | | | | | | | | | | | | (1.2) Proprietorship F M | Answer: a | MEDIUM | . | The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | Multiple Choice: Conceptual Easy: | (1.2) Firm organization C M | Answer: d | EASY | . | Which of the following statements is CORRECT? | | | | | | | | | | | | a. | One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. | | b. | Sole

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